Atlanta Real Estate Blog

 When GOOD NEWS Means BAD NEWS (Jobs Report)

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The Bureau of Labor Statistics Jobs Report, released on Friday, 2/4, caught economy watchers by surprise.

• The Unemployment Rate, which shockingly fell to 9%, was down from 9.4% last month.  Analysts had predicted an increase in unemployment. 
• In "January's Unemployment Report: Snow Job" ,  Larry Kudlow opined on CNBC that the unexpected improvement in jobs was the result of our recent winter snow storms. ("I can't  look for a job because I can't get out of my driveway").  Traders, caught in the confusion over whether the employment gains were real or fantasy, decided to sell bonds and ask questions later. 
• The Friday market reaction was a sharp and swift decline in bond prices (good economic news is bad for bonds), with Mortgage Bonds attempting to stabilize on the nearest floor of support. 

 CAUTION :  Fed Fund Futures, which forecasts rate hikes, has moved from a Monday reading of a 52% chance that the Federal Reserve Open Market Committee will hike, to a Friday reading of a 100% chance of a Fed Funds rate hike at future meetings.  

 Buyers: Get off the fence and buy now.  Rates have a greater chance to rise than they do to fall.

Tags: Bureau of Labor Statistics, January's Unemployment Report: Snow Job, Larry Kudlow, homebuyer advice, Federal Reserve Open Market Committee, homeseller advice, Jobs Report, impact of winter storms on employment, Mortgage bonds sell-off, Fed Funds Futures rise, Fed Funds rate, time to buy, ATLShortSales.com.